The Veteran Business Owner's Guide to Federal Contracting (2026 Update)

By Veteran Owned USAApril 22, 2026

The Federal Market Is Massive — But the Rules Changed

The U.S. federal government spends over $600 billion on contracts every year. A significant portion is reserved for veteran-owned small businesses. But the rules for accessing that market changed significantly between 2024 and 2026.

Before you pursue any federal contract opportunity, make sure you're operating under current rules.

Critical Change #1: Self-Certification Is Gone

As of August 5, 2024, VOSB and SDVOSB self-certification is no longer valid for any federal contract or subcontracting goal. Companies that were self-certified no longer count toward agency goals.

You must be certified through SBA's VetCert program at veterans.certify.sba.gov — not the old certify.sba.gov. As of early 2026, processing time is approximately 12 days after the SBA cleared its backlog.

If you haven't done this, stop reading and go certify first. Without it, set-aside contracts are off the table.

Set-Asides for Certified Veteran Businesses

  • SDVOSB Set-Asides: Contracts reserved for service-disabled veteran-owned small businesses
  • VOSB Set-Asides: Used extensively by the VA (7% Vets First Program goal)
  • Small Business Set-Asides: Open to all small businesses

Federal goal: 5% of all contracting dollars to SDVOSBs. The VA sets aside at least 7% for certified VOSBs/SDVOSBs under Vets First.

Step 1: Get Certified and Registered

  • VetCert Certification: veterans.certify.sba.gov (VOSB or SDVOSB — required)
  • SAM.gov Registration: sam.gov — required for all federal contractors
  • UEI Number: Assigned through SAM.gov
  • NAICS Codes: Identify which industry categories apply to your business

Step 2: Find Contract Opportunities

  • SAM.gov: Primary source for federal solicitations
  • USASpending.gov: See what agencies buy and from whom
  • VA OSDBU: va.gov/osdbu — specifically for VA contracts

Step 3: Understand the 8(a) Program Situation

The SBA's 8(a) Business Development Program — a powerful set-aside program for socially and economically disadvantaged businesses — is currently under significant scrutiny:

  • The SBA launched a major audit of 8(a) participants beginning December 2025
  • As of March 2026, over 628 companies were removed from the 8(a) program
  • Court challenges to the racial/ethnicity presumption of social disadvantage are ongoing

If you're considering or currently in the 8(a) program, consult with a government contracts attorney to understand your current standing and options.

Step 4: New FAR Rules Work in Your Favor

The FAR Part 19 overhaul (September 2025) made it easier for contracting officers to sole-source follow-on contracts to SDVOSBs after an 8(a) contract ends — without requiring separate SBA approval. This is a meaningful win for veteran businesses transitioning out of 8(a).

The 2026 NDAA also includes acquisition reforms aimed at reducing barriers for businesses new to defense contracting.

Step 5: Connect With a PTAC

Procurement Technical Assistance Centers (PTACs) provide free assistance including:

  • SAM.gov registration
  • VetCert application support
  • Finding contract opportunities
  • Proposal writing

Find your local PTAC at aptac-us.org.

Step 6: Start Small

  • Subcontract under a prime contractor first
  • Simplified Acquisition Procedures (SAP) contracts under $250,000
  • Micro-purchases under $10,000 (often awarded without competition)

North Carolina Resource

The NC Military Business Center (NCMBC) specifically helps NC businesses — including veteran-owned — access federal and DOD contracting. Website: NCMBC.us

The market is there. Your certification is the key. Get certified through VetCert and start competing.